The Daily Mail is reporting that the 18-year-old is ready to sign a new give-year deal with the Blues in what would be a huge boost for the west London club.
The same story says that the England international was a target for Bayern Munich in the January transfer window but a move failed to materialise.
Now, it is being claimed in the report that Hudson-Odoi is ready to sign a new deal worth as much as £100,000 a week – and that it could rise to as much as £10m a year if he continues to make progress.
According to the report, the progress comes after a protracted negotiation between the player and the club.
Hudson-Odoi struggled to hold down a regular starting spot in the first team under Maurizio Sarri in the first half of last season.
He featured more in the second part of the campaign, but his season was ended early when he picked up an Achilles injury and required surgery.
Chelsea FC will begin their new Premier League campaign with a trip to Old Trafford on 11 August.
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